Aberforth Smaller Companies Trust Plc Share News (ASL)

LONDON (Alliance News) - Stocks finished modestly higher in London Wednesday amid quiet trade, as investors awaited the outcome of the US Federal Reserve's first monetary policy meeting of 2015 and worried about the Greek government's next steps.

The FTSE 100 closed up 0.2% at 6,825.94. The mid-cap FTSE 250 gained 0.4% to 16,425.73, while the AIM All-Share index added 0.2% to 690.46.

In Europe, with little in the way of macroeconomic indicators, the focus remained on Greece, where Prime Minister Alexis Tsipras said the country will not initiate any "catastrophic clashes" during debt negotiations with international creditors, but also announced a slew of radical policy changes. Addressing the new government's first cabinet meeting, Tsipras made it clear that he would move forward with anti-austerity promises, potentially setting the country on a collision course with its European partners.

European stock indices ended mixed, with the CAC 40 in Paris down 0.3%, but Frankfurt's DAX 30 up 0.8%.

In the US, attention was on the Fed's monetary policy decision, scheduled for 1900 GMT. At the London equities close, the DJIA was up 0.1%, rebounding from its loss on Tuesday, when twenty-nine of the thirty components closed lower. S&P 500 was trading down 0.1% and the Nasdaq Composite up 0.1%.

Apple shares were up 7.3% after it reported late Tuesday a 38% increase in first quarter profit, driven by all-time record revenue from iPhone and Mac sales, as well as a record performance from its App Store.

On the London Stock Exchange, ARM Holdings closed up 1.4%, one of the best performers in the FTSE 100, benefiting from the strong results reported by Apple, a major customer of the UK chip designer.

Experian ended up 2.9%, the second biggest gainer in the FTSE 100 after SABMiller, after reporting that it will buy USD600 million worth of shares over the next 14 months, pledging to return surplus capital to shareholders, as the information services company outlined its strategy to analysts and investors in London. Experian said its "aspiration" is to deliver annual average growth in organic revenue in the mid-single digit range.

Severn Trent gained 2.3%. The water utility launched a GBP100 million buyback programme and joined peers in linking its dividend growth in coming years to retail price index inflation, after it accepted the UK water regulator's final determination on the pricing regime for the next five years. It said that it will now manage its existing debt portfolio as well as any future debt issuance by increasing the proportion which is held at floating rates.

Capita closed up 2.3%, after the company said it has won the race to buy Constructionline from the UK government's Department for Business, Innovation and Skills in a GBP35 million, cash-free and debt-free basis. Capita said it intends to invest in the business with an initial focus on the construction market, but with a view to expanding its services into other sectors.

Legal & General ended up 1.8% after its management unit partnered with Dutch pension fund manager PGGM to launch a London office joint venture with about GBP375 million to invest initially.

Among the three FTSE 100 miners to release fourth-quarter production results Wednesday, Anglo American's statement was the best received by the market, with the stock gaining 2.6% to be the third biggest blue-chip riser. The group warned about impairment charges for its 2014 financial year but reported a 10% increase in iron ore production from its Kumba project in the fourth quarter ended December 31 to 12.4 million tonnes from 11.3 million tonnes in the third quarter. Production increased due to the implementation of a production recovery plan, it said.

Fresnillo said gold production rose 77% year-on-year in the fourth quarter and said it has slashed its 2015 exploration budget by 8%. The stock ended flat. Antofagasta shares fell 2.9% after saying full-year production decreased and warned that gold production will decrease further in 2015.

Johnson Matthey finished down 3.2% after it left its full-year guidance unchanged.

In the FTSE 250, Saga closed up 11%, the top mid-cap gainer, after saying it has struck a deal to buy motorbike insurer Bennetts for GBP26.3 million in cash. The company will buy Bennetts, which provides motorbike insurance to more than 200,000 customers, from owner BGL Group.

Housebuilder Crest Nicholson ended up 4.8%. The company reported a 44% increase in pretax profit in its last financial year, buoyed by higher house completions and average selling prices, and said it's on track to hit its revenue growth target of between 70% and 80% by 2016 compared with the 2013 level after a strong start to its new year.

Rightmove, down 2.5%, closed among the worse performers in the mid-cap index after being cut to Sell from Buy by Panmure Gordon, while Citigroup has cut its price target to 2,115p from 2,175p, keeping it at Sell.

On AIM, Active Energy shares more than doubled in price after it said it has received three non-binding, conditional offers for its Canadian forestry joint venture company, KAQUO Forestry & Natural Resources Development Corp.

Just behind among AIM gainers was Gowin New Energy, up 92%, after saying it has secured GBP1.2 million in funding, comprising a GBP600,000 share placing and a GBP600,000 convertible loan. The group added it has reached an agreement with Choice Only International Ent Co Ltd, a Taiwan-based digital storage devices company, under which Choice will conditionally subscribe to 30 million shares in Gowin at 2 pence per share. The stock closed at 1.15p.

Mosman Oil ended as the worst AIM performer, down 28%, after the company reported a wider net loss for the first half of its financial year due to significant increases in consulting fees, travel expenses and share-based payments to staff. For the first half ended December 31, Mosman, which does not generate any revenue, reported a net loss of USD1.9 million, significantly wider than the USD439,465 loss reported in the first half of 2013.

In the economic calendar Thursday, UK nationwide housing prices are due at 0700 GMT. German unemployment figures are at 0850 GMT, while both EU M3 money supply and private loans data are at 0900 GMT. At 1000 GMT, EU consumer confidence data will be released. Attention during the afternoon will be on US Ijobless claims and pending home sales due to 1330 GMT and 1500 GMT, respectively.

In the corporate calendar, Diageo, Filtronic and Renishaw will release half-year results, as will Haynes Publishing, Aberforth Smaller Companies Trust and Rank Group. Great Portland Estates, Cranswick, Polymetal International, 3i Group, Paypoint, Euromoney Institutional Investor and Lonmin will provide trading updates.

By Daniel Ruiz; danielruiz@alliancenews.com